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Massachusetts Wage Act Claims for Unpaid Bonuses Dismissed

March 5, 2025

A recent Massachusetts ruling regarding unpaid bonuses is extremely important for employers in light of the wave of litigation involving the Massachusetts Wage Act. In this case, Plaintiff brought claims under the Massachusetts Wage Act for unpaid bonuses under ERISA, alleging that her former employer deprived her of guaranteed bonus payments.


This case is of particular interest as it is rare for a court to consider the substantive nature of a case during the dismissal stage. However, in this case, the judge ruled on the substantive nature of the wages Plaintiff claimed, outside of the purview of a typical motion to dismiss decision. The court decided that the compensation of a bonus under ERISA is “discretionary or contingent upon the employee remaining with the company [and] is not considered a wage subject to the wage act” and dismissed the claims of unpaid wages, only allowing the retaliation claims to proceed. The judge found that bonuses did not constitute wages as they are not earned.


This decision can help to decrease employers’ concerns about wage claims, particularly those related to bonuses and deferred compensation.



If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

Recent Department of Education Investigation has Created More Questions Regarding DEI-Type Protocols for Employers

February 26, 2025
Recent executive orders issued by the executive branch have raised questions for many employers, especially relating to DEI policies. While it was initially interpreted that the executive orders regarding the presence of DEI policies only applied to federal agencies and companies that receive federal funds, a recent investigation by the Department of Education has raised questions about whether privately funded organizations and companies could face prosecution.  In Massachusetts, the Massachusetts Interscholastic Athletic Association (as known as MIAA), a program not directly funded by the federal government, is being investigated by the Department of Education for an alleged violation of Title IX in allowing transgender individuals to participate in women’s sports. While MIAA’s policy is loosely related to DEI protocols, this investigation seems to declare that support of DEI-type programs and policies by private companies can be prosecuted akin to this investigation. It is investigations such as these that has led to a movement called “rainbow-hushing,” in which companies drop or quietly rebrand their diversity, equity and inclusion programs to avoid prosecution. While confusion and contradictions between anti-discrimination laws and the new wave of executive orders issued by the executive branch remain abound, it is prudent practice to seek legal counsel to avoid prosecution under the new executive orders, akin to MIAA. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

Massachusetts’ Superior Court Judge Rules Recording in Workplace Admissible

February 19, 2025
The Massachusetts Superior Court found that Massachusetts’ wiretap statue does not bar employers from using allegedly illegally obtained recordings in civil proceedings. In a recent case, an employee claimed she was forced to resign. Plaintiff’s coworker recorded an argument between the Plaintiff and her supervisor without her consent and shared it with supervisors. The employee then sued for discrimination and retaliation, along with two counts for violation of the wiretap statute. Massachusetts is a two-party consent state but, in this case, it was found that the consent of only one party was needed because nothing in the Wiretap Statute bars the use of an allegedly illegally obtained communication in a civil proceeding. The court found that the provisions about the use of illegally obtained communications in evidence are limited to criminal trials. However, depending on the court, results may differ, as this recording was central to proving and/or disproving the Plaintiff’s claim, and as such, the recording was indispensable as a piece of evidence. Issues with unauthorized recordings have been arising all the time in civil proceedings because recording devices are everywhere, whether they be a cell phone, laptop or other recording device. This ruling is good for employers, as if there is an otherwise inadmissible recording that is made that disproves an employee’s claims, it can be admissible as evidence if meets the same scenario above. However, employers must be careful to use these recordings as they may be inadmissible and may not show the same thing that the employer believes in the court’s eyes. This being said, it is prudent to consult an attorney before utilizing a recording for any employment action or in legal action to avoid unwanted consequences. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
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